Long term trading

Long term trading:

Long term trading refers to extended period of time that an asset is held. Depending on the type of security, a long term asset can be held for one year or more than 10 years and more. 

Generally speaking, long term investing for individuals is often thought to be in the range of at least five to ten years of holding time, and there is no absolute rule.

Breaking down of Long term trading :

The media frequently advises people to invest for long term but determining whether or not an investment is long term trading is very subjective.

Long term trading in companies:

A long-term investment is found on the asset Side of company's balance sheet, stock bonds, real estate and cash, that it intends to hold for more than a year.

When a firm purchase shares of stock as investments, determining whether to classify it as short term or long term affects the way those assets are valued on the balance sheet. 

Individual Long term trading:

According to the Financial industry Regulatory authority. Investors who are planning for a large multi year expense such as retirement can work to reach their financial goals by thinking of long term in the following way:

For many people, the number one long term goal is a financially secure retirement. But it's also a goal with a long time horizon. When your goal is paying for school, for example, you think in terms of paying costs of for four years .

But when you think about retirement, you have to think in terms of managing expenses for more years that you will be living after retirement.